Pratham KaushikAIR 5 · CSE 2017 · 172 wordsTheir whole copy
Opening
Corporate Governance based on profit maximisation has eroded public trust in corporates to some extent. They are viewed in purely business terms whose objective is merely profit with little regard to society. This is in contrast to govt which is viewed as vehicle for public welfare.
The erosion of trust has led to failure of corporate governance in India.
Body · points
Reasons for failure
(1) Poor business ethics of private sector (2) Declining role of morals & moral standards in private sphere (3) Increasing competition and economic insecurities.
(4) Incidents where few individuals, for vested interests, undermine ethical action. e.g. Satyam - artificially inflated share prices for personal gain of few.
(5) Profit as the only motive in essential services such as health by private sector e.g. denying entry to critically ill or delaying operations till hospital bill is submitted, even in extreme cases.
Close · a way forward
Although, with adequate awareness and education on business ethics coupled with moral values, private sector's image can be changed. Corporate Social Responsibility is also an effective tool in this context.